Monday, February 11, 2013

EXK oops!

UPDATE 2/17/13: If you scroll down to the original blog below and click the link where 2 trades were making a little fun of me because I use charts to help enter and exit a stock position, you will see this time I was right. Like I said, if your going to use fundamentals to buy and sell stocks, why can't use charts to supplement all your hard work. I think if you look at the updated chart below it might have saved these 2 guys about 10%.

They made the claim that the stock was signalling an extreme overbought and the fundamentals where so good that price had to reverse. They made this claim will it was in the last BEAR Flag. Since that time the stock has fallen an additional .71 cents or 10.2%. Second point, a Bear Flag is not something I would looking to go long on, put short. So, listen to yourself in the end, not your buddy.

I had a couple of guys making a little bit of fun of me because I made the suggestion that maybe even though they never used charts to buy a stock that it is all about value, that there is no value in charts. Well to me the chart can supplement your homework in value and that was my only point to them. I have learned this about the stock market; No matter how great the fundementals and value of a stock, if the stock falls out of favor for any reason, the stock market will punish you.

Take a look below and even though I agreed that there was value, I believed you should wait for support to be proven and price to reverse and break through the Buy CBL line that is green. Well today my point was proven once again, even and old fart has a little wisdom from life from time to time.